In accordance with Regulation PER-23/PJ/2025, the Tax Directorate General (DJP) confirms that taxpayer status is determined by actual circumstances, such as length of stay, center of economic interests, and intention to reside permanently.
Incorrect determination of this status can lead to serious consequences, including errors in tax calculations, incorrect fulfillment of tax return filing obligations, and the risk of subsequent adjustments. Thus, understanding the criteria for classification as a resident (SPDN) or non-resident (SPLN) is crucial for ensuring tax reporting compliance with current requirements and preventing future issues.
Within the Coretax system, tax status is no longer determined solely based on registration or a formal address. PER-23/PJ/2025 clarifies that resident status is assessed based on factual conditions, such as physical presence, center of economic activity, and intention to reside permanently.
Erroneous classification can lead to incorrect tax calculations, improper fulfillment of filing obligations, and potential tax reassessments. Therefore, understanding the distinction between residents and non-residents for tax purposes is extremely important for accurate and legally compliant tax accounting.
Who is Now Considered a Tax Resident (SPDN)?
For Individuals:
– Residence in Indonesia. Now the actual situation is considered: having a home, center of vital, social, and economic interests, daily habits.
– Presence in the country >183 days within 12 months. Important: days are counted cumulatively (not consecutively), and part of a day = a full day.
– Intention to reside in Indonesia in the given tax year.
Fulfilling one of the above conditions is the criterion for determining tax residency status.
What is Needed to Confirm the Status?
KITAP, VITAS/ITAS valid for >183 days.
Employment/business contract >183 days.
Long-term housing lease, documents on family relocation.
For Companies (Badan):
The criteria have shifted towards the place of management and control. A company is a resident if:
– Established under Indonesian laws.
– Its central management (where key decisions on finance, strategy, assets are made) is located in Indonesia.
Who is Considered a Tax Non-Resident (SPLN)?
For Individuals and Companies:
– Permanent residence/stay outside Indonesia.
– Main center of vital and business activity is abroad.
– Is a tax resident of another jurisdiction.
Important Point: Indonesian citizens (WNI) can be SPLN if they meet these criteria and have fulfilled all tax obligations to the DJP.
What to Do in Case of Dual Residency?
If, under the rules of two countries, you are a resident simultaneously, the decisive role is played by the Double Tax Avoidance Agreement (P3B / Tax Treaty) between these countries. Its provisions are applied first and foremost.
Brief Conclusions and Recommendations from YARD:
The era of formalities is over. The DJP now looks at where you actually live, work, and manage your business.
Prepare your documents. Take care of the evidence base for your status in advance.
Citizenship ≠ tax residency. WNI can be non-residents.
In case of conflicting statuses, look for the answer in the applicable Tax Treaty (P3B).
Rules for companies have tightened. It is critically important where strategic decisions are actually made.
Incorrect determination of status leads to risks: errors in tax calculations, fines for incorrect reporting, and additional tax assessments.
